Evaluation and assessing probability of management risk, Financial Management

Evaluation:

Once all the possible events are identified, the next step in the risk management process is to evaluate the events. As stated previously, the evaluation process would determine the probability of the particular event occurring against the impact the event would have on the business if the event were to occur.

Assessing Probability:

 When assessing probability of particular events occurring, a useful basis is the classification of probability into categories. 

A method of doing would be as follows:

Level

Descriptor

Description

1

Rare

May occur only in exceptional circumstances

2

Unlikely

Could occur at some time

3

Possible

Might occur at some time

4

Likely

Will probably occur at some time

5

Almost Certain

Is expected to occur in most circumstances


Posted Date: 10/1/2012 4:07:49 AM | Location : United States







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